The cost of group health insurance is lower than if an individual buys a policy on his own because
A) moral hazard costs of a group tend to move to a low average.
B) insuring a group eliminates the problem of buyers having more information than the seller.
C) it is easier for the company to deny claims from a large group.
D) the problem of adverse selection is reduced.
D
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In 2012, consumers in Dexter consumed only books and pens. The prices and quantities for 2012 and 2013 are listed in the table above. The reference base period for Dexter's CPI is 2012. What is the CPI in 2012?
A) 320 B) 1.00 C) 3.20 D) 100
An appreciation of the domestic currency can be caused by ________
A) a decrease in the domestic interest rate B) an increase in the domestic interest rate and expectation of an increase in the value of the domestic currency C) an increase in the domestic interest rate and the expectation of a decrease in the value of the domestic currency D) the expectation of a decrease in the value of the domestic currency
Strategic advertising in the cola market
A) significantly expands the size of the market. B) brings in few new customers and primarily shifts market share among rivals. C) shifts market demand to the right, increasing quantity sold and decreasing prices. D) has no impact on the market.
Suppose your nominal income in 1990 was $24,000. Suppose too that the consumer price index for 2012 was 1.5, and the base year for this index was 1990. How much nominal income would you need in 2012 in order to match the spending power of your $24,000 in
1990? A) $48,000 B) $36,000 C) $24,000 D) $16,000